Is Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) a Strong ETF Right Now?

Launched on 10/11/2007, the Invesco Equal Weight 0-30 Year Treasury ETF (GOVI) is a smart beta exchange traded fund offering broad exposure to the Government Bond ETFs category of the market.

What Are Smart Beta ETFs?

Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.

Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.

However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.

These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.

Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.

Fund Sponsor & Index

Managed by Invesco, GOVI has amassed assets over $1.04 billion, making it one of the average sized ETFs in the Government Bond ETFs. This particular fund, before fees and expenses, seeks to match the performance of the ICE 1-30 YR LADDERED MATURITY US TRSR ID.

The ICE 1-30 Year Laddered Maturity US Treasury Index is designed to track the performance of up to 30 U.S. Treasury Notes or Bonds representing the annual February maturity ladder across the yield curve.

Cost & Other Expenses

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

With on par with most peer products in the space, this ETF has annual operating expenses of 0.15%.

GOVI's 12-month trailing dividend yield is 3.52%.

Sector Exposure and Top Holdings

ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.

Taking into account individual holdings, United States Treasury Note/bond-1.50%-02-15-2030 (912828Z94) accounts for about 3.49% of the fund's total assets, followed by United States Treasury Note/bond-2.75%-02-15-2028 (9128283W8) and United States Treasury Note/bond-6.62%-02-15-2027 (912810EZ7).

GOVI's top 10 holdings account for about 34.36% of its total assets under management.

Performance and Risk

So far this year, GOVI has added about 3.14%, and it's up approximately 1.15% in the last one year (as of 03/12/2025). During this past 52-week period, the fund has traded between $26.57 and $29.71.

The ETF has a beta of 0.23 and standard deviation of 9.56% for the trailing three-year period. With about 30 holdings, it has more concentrated exposure than peers.

Alternatives

Invesco Equal Weight 0-30 Year Treasury ETF is not a suitable option for investors seeking to outperform the Government Bond ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.

SPDR Portfolio Long Term Treasury ETF (SPTL) tracks Bloomberg Barclays Long U.S. Treasury Index and the iShares 20+ Year Treasury Bond ETF (TLT) tracks ICE U.S. Treasury 20+ Year Bond Index. SPDR Portfolio Long Term Treasury ETF has $11.15 billion in assets, iShares 20+ Year Treasury Bond ETF has $50.61 billion. SPTL has an expense ratio of 0.03% and TLT charges 0.15%.

Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Government Bond ETFs.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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Invesco Equal Weight 0-30 Year Treasury ETF (GOVI): ETF Research Reports

iShares 20+ Year Treasury Bond ETF (TLT): ETF Research Reports

SPDR Portfolio Long Term Treasury ETF (SPTL): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.